Ashok Leyland has announced that it would be setting up a captive vehicle-financing arm by mid-FY2010.
The main motive of setting up the same is to provide finance in places where the public sector banks or other existing financiers are not present.
The finance arm is expected to have an initial capital base in the range of Rs100-150cr. The entity would be a part of the Ashok Leyland Group and would finance only the company-manufactured vehicles only.
We remain NEUTRAL on Ashok Leyland.